FIN A N C IA L P LA N N IN G FO R

IN D IV ID U A LS
BySatyam Acharya

W H AT IS?
Planning is the process of thinking about and

organizing the activities required to achieve a

desired goal.
Financial planning is thinking about the future
expenses and organising the investments to
achieve that desired goal and meet the
expense.
It is about where to invest keeping in mind the
risk-taking ability.

W H Y?
To ensure timely availability of funds for

different expenses.
To ensure optimum utilization of funds.
To get maximum possible return from the
investments, keeping in mind the risk factor.
To convert dream into reality.

HO W ?
1. Protect.
2. Plan
3. Prioritize Goals
4. Pass along Assets

Source www.herlongganddoran.com

Com ponents
Investment planning.
Income tax planning.
Vacation planning.
Maternity planning.
Children Education planning.
Insurance planning and risk management.
Estate planning.
Retirement planning.

Factors to Consider
Age Factor.
Risk-taking ability Factor
Income quantity Factor.
Income source Factor.
Spending Patterns.
Financial Goal Factor.

Instrum ents
Fixed/Recurring Deposits.
Bonds (Company/Government).
Employee/Public Provident Fund.
New Pension Scheme/ other Pension

Plans.
Equities/Commodities.
Insurance(Life/General).
Mutual Fund.
Systematic Investment Plans.
Derivatives (Stock/Currency).

FinancialPlanning Requirem ent

For Business Class
Contingent Future Profitability.
Securing Resources of

Income.
Future expansion of Business.
Securing present estate.
Life Cover.
Personal/Family Health concern.
Children Education.
Buying of Assets.
Holiday Trip.
Childrens Marriage.
Saving Tax.
Retirement/After quitting
Business.

For Salaried Class

Contingent Employment (If

Private employee).
Securing present estate.
Tackle Inflation.
Life Cover.
Personal/Family Health concern.
Children Education.
Buying of Assets.
Holiday Trip.
Childrens Marriage.
Saving Tax.
Retirement.

AGE GP 60+
Need regular income to maintain current
life style.
Need to protect investments from market
risk.
Need to save for spouse.
Require enough cash balance for any
emergency medical expenditure for both self
and spouse.

AGE GP 45-60
Saving for retirement.
Childs Higher Education Expenses or
Marriage.
Previous Investments giving Good
dividends and Returns.

FINANCIAL NEED
ANALYSIS
AGE GP 31-45
Have a high Debt Repayment through
Installments i.e. EMIs
May want to save for Childrens
education.
Persons need to financially protect their
Family and Dependents from unfortunate
events.
Elderly parents also need financial
support.
Start saving for retirement

AGE GP 21-30
Might have a financial support from
parents.
No habit of Investments and likes to spend.
May be thinking of Buying a Home or Car.
Planning to get married.
May be thinking of Higher Education.
Can take high risk

AGE GROUP 31-45

Need a more stable portfolio, with
moderate risk.
Should concentrate on less volatile
investment
Insurance is a must, include child plan
and retirement plans under this.
Should concentrate on reducing debts
Relatively long term investment

AGE GROUP 21-30

Save more and invest more, its only
possible during this stage of life,
where responsibilities are less.
ULIP would be better option in this stage.
Equity and equity related instruments.
Should think for building real estate.
Very long term investment

GENERALIZED PLAN

AGE GROUP 60+

Single Premium Immediate Annuities
Health Insurance is a must
Regular income products
Should do estate planning

AGE GROUP 45-60

Should invest in instruments which
provide regular return, such as fixed
income products.
Major portion of investment should be
diverted towards retirement plan.
Health insurance should be included.
Investment should be highly liquid

Thank You